Nike (NKE) will release its third-quarter earnings on Monday, and analysts expect to see a beat on expectations.
NKE – Daily Chart
The price of NKE stock closed on Friday at $120.39, just below the $121.90 resistance. The price now looks to get above that level; the first target is $128.
Analysts at RBC believe that interest in luxury fashion is fading and sporting goods are returning to style, with website traffic trends “buoyant.” Puma leads the industry with 58% more visits in February than last year, while Nike and Adidas are up roughly 25% on last February for website traffic.
The market expects Nike to deliver a year-on-year decline in earnings with higher revenues when it reports results for the quarter to February 2023.
The company has gained from a Consumer Direct Acceleration strategy while rising demand, compelling products, and firm performance in its digital and DTC businesses. Supply-chain issues and continued weakness in China, alongside inflationary pressures, have been weighing on the stock with a downtrend from February. The reopening in China should continue to boost the expectations for Nike.
Nike (NKE) Share Price Prediction
The estimate for fiscal third-quarter revenues is $11.4 billion, suggesting 4.6% growth from the prior-year figure. The forecast for Q3 earnings is currently 51 cents per share, highlighting a decline of 41.4% from last year.
Traders can look to the recent March resistance and play the long side for a rebound in the stock on an earnings beat.
